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REC, PFC, IRFC zoom over 200% in FY24. Time to exit PSU stocks?

A K Prabhakar, head of research at IDBI Capital, too remains selective and suggests investors exit power sector stocks such as REC and PFC where the run up has been sharp

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Illustration: Ajay Mohanty

Puneet Wadhwa New Delhi

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Hope of higher capital expenditure ahead of state and general elections has proved to be a boon for stocks of public sector enterprises (PSEs) thus far in fiscal 2023-24 (FY24). The S&P BSE PSU index has surged nearly 51 per cent during this period, shows ACE Equity data, as compared to 17 per cent rise in the S&P BSE Sensex.

A large number of these PSU stocks, suggests G Chokkalingam, managing director for research at Equinomics Research, are from the small-cap segment that has seen a good run in the last few months. The rally, he said, has made valuations

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First Published: Dec 13 2023 | 1:12 PM IST

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